The futures for the major indices are trading higher this morning without any pinpoint explanation. Therefore, the current indications can be taken at face value as a prevailing belief that the major indices are set to benefit from buy-the-dip action following last week's losses.
The S&P futures are up ten points and are trading 0.5% above fair value. The Nasdaq 100 futures are up 38 points and the Dow Jones Industrial Average futures are up 91 points.
There isn't a news driver to account for the bullish bias. It can't be pinned on positive trade developments either.
Nothing has been worked out yet between the U.S. and Canada in the NAFTA negotiations and the U.S. and China remain in a high-strung trade battle with threats of tariffs, counter tariffs, and more tariffs to the counter tariffs dominating the narrative.
There isn't any economic catalyst today to explain the futures disposition -- not from the U.S. anyway. That's because there aren't any economic releases until the Consumer Credit Report for July (Briefing.com consensus $14.5 bln; Prior $10.2 bln) at 3:00 p.m. ET.
The economic data from abroad was somewhat mixed, although Japan and the UK reported some uplifting GDP data.
China for its part released a trade balance report for August that is getting some added attention. Exports were up 9.8% year-over-year, which was a bit weaker than expected, while imports jumped 20.0%, which was a bit stronger than expected. The item of real note, however, was the understanding that China's trade surplus with the U.S. hit a record $31.05 billion.
The latter isn't going to sit so well in the Oval Office, but again, the futures market isn't recoiling on any assumed implications of what that could mean for future tariff actions.
In other developments, Leslie Moonves is out as CEO of CBS Corp. (CBS) following additional sexual harassment allegations; Tesla's (TSLA) Elon Musk has told employees that the company is "...about to have the most amazing quarter in our history"; Snap's (SNAP) Chief Strategy Officer is leaving to pursue other interests; and Alibaba (BABA) has announced a plan whereby CEO Daniel Zhang will replace Jack Ma as Chairman on September 10, 2019.
These are all interesting stories of note, yet none of them has the cachet to drive the broader market.
The broader market is driving itself on an assumption that last week's losses will be last week's losses and that this week is a new week with an opportunity to make up for the lost ground.
We'll see soon enough what unfolds. All that is known now is that the opening indication for Monday is a positive one without any news-driven explanation.